The strategic implications of black empowerment in South Africa: a case study of boundary choice and client preferences in a small firm
Stellenbosch Working Paper Series No. WP07/2010Publication date: 2010
Author(s):
This paper initiates a research programme on the strategic implications of BEE, through an in-depth case study of a small South African services firm. The case involves a meter-reading firm that has adapted flexible boundaries within the value chain to accommodate heterogeneous client preferences shaped by BEE policy. While the case is very specific, the analysis highlights three core features of BEE policy as a strategic variable. Firstly, the case supports an assertion that BEE policy is a demand-based intervention, altering client preferences regarding the value chain. Secondly, the case confirms that BEE is a market-based policy that may be implemented in a variety of ways by different clients. Thirdly, the case shows that firms do not passively respond to BEE policy but explore strategic responses that balance BEE requirements with other organizational goals.
JEL Classification:L22, M14
Keywords:Boundaries, Vertical integration, Demand-side; Black empowerment
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Upcoming Seminars
Monday 28 July 202512:00-13:00
Dr Neil Rankin: Ceo Of Predictive Insights & Stellenbosch University
Topic: "TBC"
12:00-13:00
Prof Willem Boshoff: Stellenbosch University
Topic: "Two competing approaches in South African competition policy: merger control and anti-cartel enforcement over the past 30 years"
12:00-13:00
Professor Johan Fourie: Stellenbosch University
Topic: "Economic History: TBC"
BER Weekly
25 Jul 2025 Budget hurdle cleared, but US tariff implementation remains a riskIt was another big week on the local political front, but with some constructive momentum. On the trade front, ahead of next week’s 1 August deadline, Trump announced another “massive” trade deal with Japan. The upcoming week is busy, with a slew of global and domestic data releases and several monetary policy decisions, including the SARB....
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